The Australian dollar firmed on Tuesday after the local central bank sounded slightly more upbeat in its latest policy statement, where it kept interest rates unchanged at a record low of 3 percent as expected. In a statement accompanying its rate decision, the Reserve Bank of Australia (RBA) said the local economy was not as weak as earlier forecast, and that the US economy may be reaching a turning point.
Although the RBA said there was scope for further easing if needed, its more hopeful tone fed speculation it may not cut rates further, and may even raise rates next year. That nudged the Aussie up to $0.7972, off an intra-day low of $0.7943, and compared to Monday's $0.7936. It also climbed on the yen to 75.97 yen, from Monday's 75.60. December bill futures shed 0.03 points to 96.75, from 96.77 before the rate decision. Three-year bond futures fell 0.02 points to 95.50, while ten-year bond futures shed 0.03 points to 94.565.